Thank you.
Honourable MPs, members of the Standing Committee on Official Languages, thank you for granting me the opportunity to testify before you today.
I am Caroline Jamet, and I’m the president of Cogeco Media. We head 21 radio stations in Quebec and Eastern Ontario, which reach nearly 4.5 million listeners per week.
French-language radio advertising is an essential pillar of our culture and local news, but regulatory unfairness in the face of foreign web giants is threatening its survival. To protect our local voices, the government must act now and level the playing field by supporting our industry.
We are passionate about radio. We believe in its unique force as well as in our fundamental role. For more than 40 years, we’ve been a key player in the free flow of ideas and information, contributing to Quebecois and Canadian culture for the local communities we serve. We are committed to keep playing this role.
French-language music on our airwaves is part of our mission, and so is promoting local artists. We also cover the rich cultural vitality in other areas like film, theatre and books.
We share the goal of promoting Canadian musical content. Our commitment goes well beyond broadcasting music on our airwaves. We conduct over 500 interviews a year with artists, and that’s not counting cultural columns and promotional events. Those are all contributions that the Canadian Radio Television and Telecommunications Commission, or CRTC, does not recognize or measure.
The commercial French-language radio industry is now under threat.
The arrival of foreign digital platforms disrupted Canadians’ listening habits. The regulatory framework, created for our industry during the last century, never changed. Foreign platforms are eroding our revenue, and our audiences have no regulatory constraints.
Montreal’s French-language music radio lost 40% of its listening hours over five years. On the revenue side, foreign digital platforms, mostly American, attract 10 billion of the $14.3 billion of the country’s advertising investment dollars. Only 30% of advertising revenue reach Canadian media, and barely 4% reach radio.
It is urgent to act, so that our radio stations can keep playing their role.
Furthermore, we are living in a time of growing disinformation, which is eroding our democracy. The journalistic content and local information we offer are more essential now than ever. In a recent SOM poll of Quebeckers, 90% of respondents think that the media, including private radio, is important for democracy, and 85% were of the opinion that private radio broadcasts credible information.
Most of the time, we are the only bulwark against the spread of news deserts.
We cover real regional life and communicate citizens’ opinions, which foreign digital platforms will never do. CNN and Fox News will never tell the inhabitants of Saint Jerome about local events, or cover the Lake St-Jean International Crossing.
American web giants and large foreign platforms are the source of the crisis we’re living through now. Holders of unprecedented market power, these foreign companies are waging unfair competition for audiences and breaking our sector’s business model.
We therefore ask the government and the CRTC to act. To do so, the federal government can and must intervene on five fronts.
First, section 19 of the Income Tax Act contains a loophole allowing Canadian advertisers to deduct their advertising expenses when they buy ads from platforms like Facebook. The loophole encourages advertisers to invest in foreign platforms instead of Canadian media. It’s incompatible with the issues affecting our local media.
We call on this committee to recommend that the government extend the application of section 19 to foreign online businesses. It would level the playing field and encourage investment in Canadian media.
Second, we are asking for broadcaster incentives to promote buying media from Canadian media.
Third, we ask the federal government to set an example: end preferential purchasing of advertising from foreign digital media, and choose Canadian media instead. Every dollar sent abroad is a dollar taken away from Canadian media fighting for their survival. Furthermore, the public very broadly supports a policy favouring local media. It garnered support from 87% of francophone Quebeckers, according to SOM.
Fourth, the government must support journalism. Currently excluded from programs benefitting other media, our ask is for radio to be included in the Canadian journalism labour tax credit.
Fifth, the CRTC must lighten the regulatory burden weighing on our industry, since other platforms have no requirements at all.
Thank you for your time.